FASB Requests Comments on Accounting for Goodwill
FASB has issued an Invitation to Comment, or ITC, as part of FASB’s project on certain identifiable intangible assets acquired in a business combination and subsequent accounting for goodwill. In previous outreach, the FASB staff received mixed feedback from users, preparers, and practitioners of financial reports on this topic. Consequently, it is presently unclear whether the benefits justify the costs for public business entities, or PBEs. Because the Board has not received conclusive feedback about whether a change to financial reporting is warranted and, if so, whether cost-effective solutions that maintain or improve decision usefulness are feasible, the FASB staff issued the ITC to solicit additional feedback. FASB requests input on:
- Whether changes to financial reporting should be addressed by the Board,
- Whether and how to proceed with simplifications and/or improvements to these topics, and
- How optionality in the accounting for intangible assets and goodwill is viewed.
Contact Steve Quinlivan for more information.